Georgia's Lion Finance reports 39pc rise in first-quarter profit

(Sharecast News) - Lion Finance Group reported a 39% year-on-year rise in first-quarter profit to GEL 513.1m (£141.14m), driven by strong performances in Georgia and Armenia and continued leadership in digital banking. The FTSE 250 company, formerly known as Bank of Georgia Group, achieved a return on average equity of 28.7%, with its Georgian and Armenian units contributing GEL 405.1m and GEL 95.5m in profit respectively.

Digital channels accounted for 85% of loans and 74% of deposits, while customer satisfaction with its mobile apps remained high.

The results reflected robust macroeconomic conditions, with Georgia's economy expanding 9.3% and Armenia's by 4.1% in the quarter, supporting loan growth and operational momentum.

Ameriabank, fully consolidated in March last year, now represented a quarter of group assets and underpinned Lion's 20.3% market share in Armenian loans.

Group-wide, market share stood at 37.3% in Georgia.

Lion Finance said it was maintaining a strong capital position, with CET1 ratios of 16.4% for Bank of Georgia and 14.7% for Ameriabank, enabling continued investment in growth and shareholder returns.

The company reaffirmed its strategic targets, including annual loan book growth of around 15% and ROAE exceeding 20%, while distributing 30% to 50% of earnings through dividends and buybacks.

At 0924 BST, shares in Lion Finance Group were down 9.81% at 6,087.61p.

Reporting by Josh White for Sharecast.com.